November 16, 2012

Kyle Bass on Europe and some ideas

According to Kyle Bass “a popular revolt will happen” due to austerity and high unemployment. This will basically stop the kicking the can in Europe. Even though, Blackrock is buying European bonds, Kyle reminds that there were a very few people that got the credit crisis correct and the herd overall buys everything especially when it have a huge amount of capital. According to Kyle, buying Europe is like expecting Germany to leave the Euro in 3-4 years, as according to him, ‘joint-and-several’ liabilities will never happen when Germany is in.

Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.